Functions of sales promotion. Function of Sales Promotion 2022-10-14
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Sales promotion refers to a variety of marketing activities that are designed to encourage the purchase of a product or service. These activities can take many forms, including discounts, coupons, contests, samples, and demonstrations. The primary purpose of sales promotion is to stimulate demand for a product or service, often in the short-term, by providing an incentive for consumers to make a purchase.
One key function of sales promotion is to attract new customers. This can be done through the use of coupons or discounts that are designed to entice first-time buyers. For example, a company might offer a discount on a new product to encourage people to try it out. This can be especially effective when the product is new to the market and people may be hesitant to purchase it without a discount.
Another function of sales promotion is to increase the frequency of purchases by existing customers. For example, a company might offer a loyalty program that rewards customers for their repeat business. This can help to encourage customers to purchase more frequently, as they know they will receive a benefit for doing so.
Sales promotion can also be used to drive traffic to a particular location, such as a store or website. For example, a company might offer a discount or coupon that is only available at a physical location, in order to encourage people to visit the store. Similarly, a company might offer an online promotion that is only available through a particular website, in order to drive traffic to that site.
In addition to attracting new customers and increasing the frequency of purchases, sales promotion can also be used to introduce new products or to clear out old inventory. For example, a company might offer a discount on a new product in order to encourage people to try it out, or it might offer a discount on an older product in order to clear out excess inventory.
Overall, the functions of sales promotion are varied and can be customized to meet the specific needs and goals of a company. Whether it is used to attract new customers, increase the frequency of purchases, drive traffic to a particular location, or introduce new products, sales promotion can be an effective tool for stimulating demand and driving sales.
15 Role and Nature of Sales Promotion (With Example)
Role of Retail Stores: Retailer takes many marketing decisions, tries to find new marketing strategies to attract and hold customers. Small budget firms have to exercise extreme caution and use such promotion judiciously, because this may prove to be quite expensive proposition. The main purpose of sales promotion is to boost sales of a product by creating demand, that is, both consumer demand as well as trade demand. Premium Gift Offers : These are temporary price reductions, which appeal to bargain instinct. Distribution of samples is popular in case of books, drugs, cosmetics, perfumes and other similar products.
Such slogan centres around the questions as to the liking of a customer for the product, or formulation of new advertising idea for the product. Promotional mails and messages are forwarded by sales promotion team continuously for keeping their customers engaged with them. It is also emerging as a global force. ADVERTISEMENTS: Interrelationship of Sales Promotion and Advertising: Sales promotion includes all those activities which promote sales such as distribution of samples, discount coupons, contests, display of goods, fairs and exhibitions, etc. Everything about contest, whether display or sales, should convey the idea that it is something special. To overcome the seasonal fluctuation of products. A free sample is generally welcome to almost all consumers and increases the probability of trail, and in some cases, purchase as well.
Increasing the inventories of business buyers — Retailers may be induced to keep in stock more units of a product so that more sales can be affected. Development of customer relationship understanding. It will increase the sales volume. Free samples may be distributed to leading consumers who may be a source of advertisement for other prospective consumers. Targeting a Specific Market Segment Most companies focus their marketing efforts on specific sales promotion examples Many marketers are finding that sales promotion tools such as contests, coupons, and samplings are very effective ways to reach specific geographic and demographic markets. Displays serve them as reminders, encourage unplanned purchases and increase store traffic. The consumers are expected to be convinced to use the product.
Sales Promotion: Objectives, Importance, Techniques, Examples, Methods, Types and Tools
These stimulate customers to make purchase promptly on the sport. Monitoring performance of Sales teams through dashboard reports Reports production is essential to understand the levels of progress. Promotion helps a firm increase the sales of its products. These efforts include coupons, door-to-door distribution, and free samples. Encourage dealers to participate in display and sales contests.
A free sample, along with a coupon of attractive value, may prove to be more effective in inducing trial of a new product by consumers and may also lead to purchase of the regular pack from the market. Informing: Informing is to educate the consumers about the product. Such activities make the product popular and are complementary to press and other media of advertising and personal selling. A manufacturer must make the customers to know the product and he must influence them to buy that product. Consumers today are getting better education, are more selective and have become less loyal to brands than in the past. Now-a-days top level managers realize and accept that sales promotion effects sales.
Public Relations Public Relations PR has to do with creating a good image for the organization as well as its employees, to customers, shareholders, government agencies or a special interest group. Sales Promotion Planning Guidelines: Planning process starts with situation analysis. Efforts must also be put into perfect the measurement, the methodology for evaluation and documentation of corporate experiences on sales promotion the errors in the existing system, corrections in procedures and the mishaps that occurred ultimately to help in improving the skills of managing the sales promotion function. It motivates sales force to give desire emphasis on new accounts, latent accounts, new products and new territories. Overview Communication is the purpose of a function on sales promotion strategy activities on a sale. Another very popular sales promotion for consumers is a premium.
Sales Promotion: Definition, Purpose and Importance
It demonstrates the brand products at a large scale and tells people about their benefits. Such contests are held through radio, T. Sales promotion is different from personal selling which is persuasion of customers by the sales persons to buy certain products. The promotional means may be salesmen, dealers, press, and other supplementary activities. It means offering a small quantity of a product free in order to persuade customer to try the product. Sales are necessary to ensure the existence of any profit-making enterprise; they provide the revenue with which a firm keeps operating. Supporting and supplementing the advertising and personal selling efforts.
28 Important Functions of Sales Promotion (With Examples)
Seventh step relates to monitoring the offer, collection of the relevant data and for the future use as well as mid period corrections in promotion methods. For example, woolens are put on discount at January-end each year, the end of the winter season. ADVERTISEMENTS: Joseph Mair has recorded one such policy statement in the Handbook of Sales Promotion; the policy says: 1. Promotional activities increase or help increase the sale by making effective upward change in the elasticity of demand of the product or service through various techniques i. And, the likelihood of a sale increases dramatically. Promoters called on about half a million households in this city. Need and Importance of Sales Promotion: Sales promotion acts as a bridge between advertising and personal selling.
Sixth step cover the development and evolution criteria in relation to sales to be achieved cost effectiveness and turnover of promotion. It increases sales and makes sales of slow moving products faster and stabilize fluctuating sales pattern. A firm can also use data revealing how its product compares with the other products. Helping firm remain competitive — Sales promotions maybe undertaken to meet competition from a firm. Promotion mixes are the promotion tools available for the marketer to use, which he can combine in any desired manner to secure appropriate results. ADVERTISEMENTS: Following are the objectives of sales promotion: i. The basic goal of most consumer-oriented sales promotion programs is to induce purchase of a brand.